In a bold move that could reverberate across the nation, the city of Monterey Park in Los Angeles County has become the first in the United States to permanently ban data centers. This decision, driven by community activism and environmental concerns, highlights the growing tension between technological advancement and local quality of life.
The ban, approved by voters on April 1, 2026, follows months of public outcry and a unanimous city council vote in March to extend an existing moratorium. The developer of a planned data center withdrew their proposal in the face of mounting opposition, demonstrating the power of community engagement.
Community Efforts and National Sentiment
Elizabeth Yang, the mayor of Monterey Park, expressed the community’s relief and pride in their collective effort. “Voters were extremely happy that all their hard work and effort came out with a good result,” Yang stated. The campaign involved door-to-door canvassing, signage, fundraising, and grassroots campaigning, showcasing the determination of local residents.
The sentiment in Monterey Park reflects a broader national trend. A March Gallup poll revealed that seven out of ten Americans oppose data centers, citing concerns over energy consumption and environmental impact. Khara Boender, director of state policy at the Data Center Coalition, warned that Monterey Park’s ban could send a “signal that the area is closed for business.”
The Role of Data Centers in Modern Economy
Data centers are the backbone of artificial intelligence and other digital technologies. California alone hosts at least 287 facilities, which supported over 665,000 jobs and generated $14.1 billion in state and local taxes in 2026. Major tech giants like Meta, Microsoft, Amazon, and Alphabet are expected to invest a combined $700 billion in data centers globally by the end of 2026.
Peter Leroe-Muñoz, senior vice president and general counsel for the Bay Area Council, emphasized the importance of data centers. “Data centers make modern lives possible,” he said. “They really are the platform for play, productivity and potential in the 21st century economy. And shutting yourselves off from those opportunities does a disservice to residents, businesses, research and entrepreneurship.”
Regulatory Challenges and Local Responses
Driven by public concern over the enormous energy use and environmental impacts of data centers, cities and counties across California are grappling with how to regulate these facilities. Imperial County’s board of supervisors is considering a temporary moratorium on data center projects following resident criticism. Meanwhile, San Jose, home to at least 40 data centers, is drafting guidelines for future developments, although critics remain skeptical.
In, San Jose touted a partnership with Pacific Gas & Electric Company to streamline data center development. This move, however, has raised questions about the city’s commitment to balancing technological progress with environmental and community concerns.
The debate over data centers is far from over. As more communities weigh the benefits and drawbacks of these facilities, the outcome in Monterey Park could serve as a model or a cautionary tale for other cities grappling with similar issues.
